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BartSMP [9]
3 years ago
7

Acme Inc. has 200 total employees, 150 of which are nonexcludable employees. Ten employees are highly compensated. Seven of the

10 highly compensated and 100 of the 140 nonhighly compensated employees are covered under Acme's qualified plan. The average accrued benefits for the highly compensated is 3% and the average accrued benefit for the nonhighly compensated is 1.5%. Which of the following statements is true regarding coverage? The Plan Passes the ratio percentage test. The plan passes the average benefits test. a. Both 1 and 2. b. 1 only. c. Neither 1 nor 2. d. 2 only.
Business
1 answer:
Irina18 [472]3 years ago
8 0

Answer:

b. 1 only.

  1. The Plan Passes the ratio percentage test.

Explanation:

the ratio percentage test = ratio of non-HCE / ratio of HCE ≥ 70%

ratio percentage test = (100/140) / (7/10) = 0.71/0.7 = 1.02 or 102% ≥ 70% ✓ passed

the average benefits test = 1.5% / 3% = 0.5 or 50% ≤ 70% X failed

This means that the highly compensated employees receive disproportionately high benefits from the plan.

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Mr. Leghorn lives next door to Mr. Fudd. During hunting season, Mr. Fudd likes to shoot rabbits in his backyard, which activity
Dvinal [7]

Answer:

A. Mr. Fudd to pay Mr. Leghorn between $500 and $900 to continue hunting.

Explanation:

3 0
3 years ago
A certain project has three activities on its critical path. Activity A’s normal completion time is five days. It can be crashed
Snowcat [4.5K]

Answer:

Acitivy B should be crashed first by 2 days and Activity B has a crash cost per days of $25, it will be crashed for a total of $50.

Explanation:

activity A =

normal time (NT) = 5 days

Normal cost (NC) = $0

crash time (CT) = 3 days

Crash cost (CC) = $500

crash cost per day = [CC - NC]/[CT - NT] = $250/day

activity B:

normal time (NT) = 6 days

Normal cost (NC) = $0

crash time (CT) = 4 days

Crash cost (CC) = $50

crash cost per day = [CC - NC]/[CT - NT] = $25/day

activity C:

normal time (NT) = 8 days

Normal cost (NC) = $0

crash time (CT) = 3 days

Crash cost (CC) = $1000

crash cost per day = [CC - NC]/[ CT- NT] = $200/day

The activity that takes the least cost to speed up is the first one to be crashed. from the computations, activity B takes the least cost to speed up, so the project manager should crash activity B first by 2 days.

Therefore, Acitivy B should be crashed first by 2 days and Activity B has a crash cost per days of $25, it will be crashed for a total of $50.

6 0
3 years ago
Lydia Hagberg went to her bank, California Federal Bank, FSB, to cash a check made out to her by Smith Barney (SB), an investmen
user100 [1]

Answer:

Yes the absolute privilege for communications made in judicial or other official proceedings apply to statements made when a citizen contracts the police to report suspected criminal activity

Explanation:

Absolute priviledge for communication is the provision that covers a person from legal action on grounds of defamation for statements made. Under certain circumstances a person can make defamatory statements and be immune from legal action.

In this scenario Lydia Harberg went to California Federal Bank to cash a check that was suspected to be fake.

Nolene Showalter contacted SB to confirm. Based on the information provided at that time, the check was confirmed to be fake. The implication was that a fraud was being perpetrated.

So his action of calling the police is justified. SB only verified they gave out wrong information the first time

8 0
3 years ago
Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $420 and has a unit contributi
sergey [27]

Answer:

the  firm's contribution margin per composite unit is $8,775

Explanation:

The computation of the firm's contribution margin per composite unit is given below:

= $165 × 5 + $510 × 9 + $560 × 6

= $825 + $4,590 + $3,360

= $8,775

Hence, the  firm's contribution margin per composite unit is $8,775

Therefore the same is to be considered and relevant

7 0
3 years ago
On April 1, Garcia Publishing Company received $33,480 from Otisco, Inc. for 36-month subscriptions to several different magazin
allochka39001 [22]

Answer:

Unearned Fees A/c Dr.  $8,370;

Fees Earned A/c  Cr. , $8,370.

Explanation:

The amount of  $33,480  paid is for 36 months.  Subscription per months will be $33,480 divided by 36 months

=$33,480 / 12

=$930

The subscription was paid on April 1st. Between April 1st and December 31st, there were 9 months.

The subscriptions for that year will be

= $930 x 9

=$8,370

The journal entries will be as follow

Unearned Fees A/c Dr.  $8,370;

Fees Earned A/c  Cr. , $8,370.

3 0
3 years ago
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